Satellite radio merger still orbiting hurdles

SATELLITE RADIO MERGER STILL ORBITING HURDLES
[SOURCE: Reuters, AUTHOR: Jeffrey Yorke]
Satellite radio companies Sirius and XM invested billions in infrastructure and millions more in marketing to differentiate themselves from one another. Now, they're spending millions more in an attempt to merge. Already they have put up $13 million -- $5 million by Sirius, $8 million by XM -- trying to convince Washington, D.C., regulators that their union "will bring unprecedented benefits to consumers and significantly enhance, rather than harm, competition." But with a decision from the regulators expected before year's end, there's plenty of money pushing against the merger as well. A disclosure that the National Association of Broadcasters filed with the Senate Office of Public Records states that broadcasters spent $4.28 million during the first half of 2007 on lobbying against such issues as the Sirius-XM merger, resurrection of the Fairness Doctrine and the Recording Industry Association of America's proposed performance royalties.
http://today.reuters.com/news/newsArticle.aspx?type=industryNews&storyID...

* More NPR lobbying against XM/Sirius merger; but why?
[Commentary] Why is National Public Radio so adamantly against the proposed XM-Sirius merger? NPR has offered a variety of arguments against the merger. LLFCC finds most convincing among them the fear that a united XM/Sirius will put it at a disadvantage on the satellite platform.
http://www.lasarletter.net/drupal/node/464

* The Buzz on Satellite Radio
Excerpts of public comments submitted to the Federal Communications Commission in connection with the proposed merger of XM Satellite Radio and Sirius Satellite Radio.
http://www.washingtonpost.com/wp-dyn/content/article/2007/09/16/AR200709...
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* The Future for XM, With or Without a Sirius Merger
[SOURCE: New York Times 9/15, AUTHOR: Eric Taub]
Sirius Satellite Radio XM Satellite Radio, the only satellite radio networks authorized to operate by the Federal Communications Commission, expect to learn by the end of this year whether their request to merge will be successful. The move has been opposed by the National Association of Broadcasters, the group representing traditional television and radio companies, and by some consumer groups as anticompetitive and counter to agreements the companies made when the government approved their requests for operating licenses. Nate Davis, XM’s president and interim chief executive, and Gary Parsons, the company’s chairman, recently discussed the merger and the future of the company if the merger petition is not successful. "If the merger does not happen, we will be very focused on making sure we continue to move to generate cash from operations in the near term and being earnings positive. We have to compete in all markets so we will continue to make our content better and better."
http://www.nytimes.com/2007/09/15/business/15interview.html?ref=todayspa...
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